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My Mack truck did the same thing and it had a valve seat that had let lose and busted the piston and sleeve. I had to put in a piston and sleeve and head. I don't know why the experts here haven't chimed in here yet but I'm sure they will soon. A bad blower can do all of this too. In a gas engine we would just pull the spark plugs and do a compression test. A scan is definitely in order, I'm sure you must have done that by now. There is no making these trucks go without one. They wanted $100 at ford to test mine. The scanner is $250 and the Ford Upgrade $149, there is no other way. I will send you mine to use until you get it fixed if you want.
I just bought my first Powerstroke a few weeks ago. It's a 1996 E350 15 passenger van. I love it. I think the guy that sold you yours screwed you. Ether starting fluid is a deadly sin. Mine has 620,000 miles plus on it and it runs great. I got it for $700 because it had a bad vibration he couldn't find and he was told his ujoints were good. They were so bad I had never seen worse ujoints, frozen solid and beat all to hell. New ujoints fixed it. $60 bucks.
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Bumper to bumper, Full Synthetic!!! Rotella T 5-40(7.3L) -- Mobil 1 Mercon V(E40D) -- Amsoil Extreme 75-90(Danas 60) -- Detroit Lakes, Minnesota -- "Boating has always been a rich mans hobby". -- 1996 E350 XLT Club Wagon 15 Passenger Van. -- Purchased 10-21-2009 for $700 cash with 620,000 miles on it! -- It's mint and beautiful! -- I love it! -- I am 64 years old and a professional mechanic and truck driver for over 45 years. --I am now a rich man driving a $50,000 prime time Ford that gets 21 MPG(HWY) & 16 MPG(Town).
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